Trelleborg Financials

Transcription

1 Trelleborg Financials Capital Markets Day Ulf Berghult, Chief Financial Officer Berns, December 6

2 Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 2

3 Current financial targets Organic growth: 5% EBITDA margin: 2% Return on equity: 2% Continuing operations, over a business cycle, excluding items affecting comparability 3

4 Organic sales development Organic growth target: 5% average 20% 5% 0% 5% 0% -5% -0% % % -5% -20% -25% % -28 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q Continuing operations 4

5 Operating margin development EBITDA margin target: 2% MSEK ,0% 2,4% 2,4% 2,8% 3,7% 3,8% % 4% 2% 2,0% ,4% % 8% 6% 4% 500 2% EBITDA EBITDA % Continuing operations, excl. items affecting comparability and excl. TrelleborgVibracoustic 202 Q3 R2 0% 5

6 Drivers of EBITDA margin improvement EBITDA bridge 4 2 % 2,4% 3,8% 2,0% 0 9,4% 2,0% Gross Profit SG&A 202 Q3 R2 Sales: Branding Positioning Pricing Efficiency Flexibility Cost: Efficiency Excellence program Purchasing Flexibility 6

7 Return on Equity % 6% 4% 2% 0,5% 0% 8% 7,6% 6% 4% 2% 0% -2% -4% 5,% 4,3% 2,9% 2,8% 3,2%,2%,5% 2,0% 9,5% 0,0% 8,4% 5,6% 3,6% -2,7% Q3 R2 202 Q3 R2 Trelleborg Group Continuing operations excl. items affecting comparabilty incl. TrelleborgVibracoustic Continuing operations excl. items affecting comparabilty incl. TrelleborgVibracoustic, adjusted proforma 7

8 Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 8

9 New organisation Operational focus President & CEO Group functions Trelleborg Coated Systems Trelleborg Industrial Solutions Trelleborg Offshore & Construction Trelleborg Sealing Solutions Trelleborg Wheel Systems Joint Venture Trelleborg Vibracoustic Former Trelleborg Engineered Systems 9

10 New organisation Continuing operations Operational focus Sales and EBIT margin; 202 Q3 R2M EBIT margin % 25% 20% 20,9% 5%,9%,3% 0% 7,2% 5% 3,8% 0% Sales Trelleborg Sealing Solutions 35% Trelleborg Industrial Solutions 2% Trelleborg Wheel Systems 9% Trelleborg Offshore & Construction 7% Trelleborg Coated Systems 8% Excluding items affecting comparability 0

11 New organisation from an accounting perspective Profit and Loss key items Trelleborg Sealing Solutions Trelleborg Wheel Systems Trelleborg Industrial Solutions Trelleborg Coated Systems Trelleborg Offshore & Construction Group items Continuing operations Profit from associated companies Items affecting comparability Trelleborg Group

12 Profit from associated companies accounting principles Shares in associated companies are accounted for according to equity method The initial share of the associated company is adjusted to reflect the Group s share of the profit and dividends received TrelleborgVibracoustic the share in profit is reported on two lines in the Income Statement; profit before tax and tax

13 Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 3

14 Stable development Group sales; in constant currency MSEK CAGR +9% CAGR +4% Q3 R2 4

15 Diversified by geography Sales growth per geography from 2006 to R2 Q % North America +7% Western Europe +7% Eastern Europe +8% Asia +88% South and Central America +36% Africa & Middle East Relates to a combination of organic growth and M&A activities 5

16 Diversified by geography Trelleborg sales split per geography % 70% 68% 65% 60% 56% 8% 9% 5% 4% 0% 5% 4% 5% 2% 3% 6% 3% 3% 0% Western Europe Eastern Europe North America South & Central America Asia Africa & Middle East Q3 R2 6

17 Operating margin development Sales and EBIT margin MSEK 0 8,8% ,6% ,3% ,5% ,6% 20 0,6% % Excluding items affecting comparability EBIT % Sales 5,6% 202 Q3 R2 % % 0% 9% 8% 7% 6% 5% 4% 2% % 0% 7

18 Trelleborg Sealing Solutions Sales and EBIT margin MSEK ,5% 20,9% % 22% ,2% 4,3% 4,5% 7,7% 5,6% 20% 8% 6% 4% 2% 0% 8% % 4% 2% EBIT % Sales Q3 R2 0% Excluding items affecting comparability 8

19 Trelleborg Wheel Systems Sales and EBIT margin MSEK ,7% 8,9% 9,9% 9,4% 8,8% 0,4%,9% % 2% % 0% 9% 8% 7% % 500 5% 4% 000 3% 500 2% % EBIT % Sales Q3 R2 0% Excluding items affecting comparability 9

20 Trelleborg Industrial Solutions Sales and EBIT margin MSEK % ,3% 9,5% 8,7% 9,3% 8,8% 0% 9% ,7% 7,2% 8% 7% 6% 5% 4% 3% 2% 500 % EBIT % Sales Q3 R2 0% Excluding items affecting comparability 20

21 Trelleborg Coated Systems Sales and EBIT margin MSEK % ,8% 2,9% 2,0% 0,5% 500,3% 4% 2% 0% 000 7,4% 8% 6% 500 5,% 4% 2% Excluding items affecting comparability 2 Excluding start-up costs in Brazil EBIT % Sales Q3 R2 2 0% 2

22 Trelleborg Offshore & Construction Sales and EBIT margin MSEK 4 000,6% ,7% 9,5%,0% 9,5% 5,9% % 2% 0% 8% 6% ,9% 3,8% 4% 2% EBIT % 200 Sales Q3 R2 2 Jan-sep 202 0% Excluding items affecting comparability 2 Please note that Q4 20 was impacted by substantial one-off costs 22

23 Stable operating cash flow generation MSEK % % 250% % % % 76% 7% 92% 68% 78% 00% 50% % % Cash Flow Cash conversion Q3 R2 Excluding items affecting comparability 23

24 Investing for organic growth Capex vs. depreciation and % of sales MSEK % 200 9% % % ,5% 4,4% 5,% 3,2% 2,9% 3,9% 4,5% 6% 5% 4% 3% 0 2% Capex 2009 Depreciation 200 % of sales Q3 R2M Excluding items affecting comparability 24

25 Operating cash flow drivers EBITDA main driver going forward Capex levels Continued focus on working capital management 25

26 Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 26

27 Improved capital structure % Net debt / Equity Net debt / EBITDA ratio 40% 20% 24% 7 6 6,2 5,7 00% 96% 00% 5 5,0 4,3 80% 68% 4 60% 40% 53% 48% 4% 3 2 2,7 2,3,8 20% 0% Q3 R Q3 R2 Continuing operations incl. items affecting comparability and as from Q3 202, incl. TrelleborgVibracoustic, not proforma adjusted 27

28 Financial stability Trelleborg Group Trelleborg Group 202 Q3 R2 EBITDA Net debt Equity Trelleborg Group excl. items affecting comparability 2 Continuing operations excl. items affecting comparability incl. TrelleborgVibracoustic proforma 28

29 Agenda Financial targets Group structure Continuing operations Trelleborg Group Updated financial targets 29

30 Updated financial targets raising the bar Continuing operations (excluding TrelleborgVibracoustic) Organic growth: 5% (unchanged) EBIT margin 2 : 2% (equivalent of ~EBITDA of 5%) Trelleborg Group (continuing operations including TrelleborgVibracoustic) Return on Equity (RoE): 5% Over a business cycle 2 Excluding items affecting comparability

31 New organisation from an accounting perspective Financial targets and reporting structure Organic growth: 5% EBIT margin: 2% Return on Equity: 5% BA Sealing Solutions BA Wheel Systems BA Industrial Solutions BA Coated Systems BA Offshore & Construction Group ventures Group functions Group items Net sales Continuing operations EBIT Continuing operations Profit from associated companies Items affecting comparability Net profit 3

32 Organic sales development Organic growth target: 5% average 20% 5% 0% 5% 0% -5% -0% % % -5% -20% -25% % -28 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q Continuing operations 32

33 Operating margin development EBIT margin MSEK % 4% ,8% 9,6% 9,3% 9,3% 0,6% 0,6% 2% 0% 8% 2,0% ,5% 6% 4% 2% 0 0% Q3 R2 EBIT EBIT % Continuing operations excl. items affecting comparability and excl. TrelleborgVibracoustic 33

34 Return on Equity % 5% 0% 0,5% 2,9% 2,8% 0,0%,2%,5% 3,2% 5,0% 5% 5,6% 0% Q3 R2 202 Q3 R2 proforma Continuing operations excl. items affecting comparabilty incl. TrelleborgVibracoustic 34

35 Return on Equity % 5% 0% 8,7% 0,5%,% 2,9% 2,8% 8,9% 0,0% 0,4%,2% 4,0% 3,2% 2,3%,5% 5,0% 7,4% 5% 3,6% 5,6% 0% Q3 R2 Continuing operations incl. items affecting comparabilty incl. TrelleborgVibracoustic 202 Q3 R2 proforma Continuing operations excl. items affecting comparabilty incl. TrelleborgVibracoustic 35

36 Financial guidelines updated Dividend policy of 30-50% of net profit 2 Net debt / Equity ratio of 50 % - 00% Restructuring costs 202 ~80 MSEK / 203 ~250 MSEK Capex 202 ~850 MSEK / 203 ~900 MSEK Tax rate ~28% Related to continuing operations 2 Definition: The Group s dividend policy is that, over the long term, the dividend should amount to between 30 and 50 percent of net profit for the year. Adaptation is made to the Group s result, financial position and future development possibilities

37 New organisation from an accounting perspective Financial targets and reporting structure BA Sealing Solutions BA Wheel Systems BA Industrial Solutions BA Coated Systems BA Offshore & Construction Group items Net sales Continuing operations EBIT Continuing operations Profit from associated companies Items affecting comparability EBIT 37

38 TrelleborgVibracoustic EBIT development MSEK +26% TrelleborgVibracoustic-Proforma Trelleborg Group share of TrelleborgVibracoustic Trelleborg Automotive AVS Adjusted proforma Q3 R2 38

39 TrelleborgVibracoustic Financial impact on Trelleborg Group MSEK % EBIT Book value Profit share Book value 30/9-202 Repayment Book value post refinancing Actual 20 Trelleborg Automotive AVS 202 Q3 R2 TrelleborgVibracoustic Adjusted proforma Shares Receivables 39

40 Trelleborg Financials Questions & Answers 40

41 Welcome to the World of Trelleborg